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Exam 12: Corporations: Organization, Stock Transactions, and Dividends

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Question 21

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On May 1, 10,000 shares of $10 par common stock were issued at $30, and on May 7, 5,000 shares of $50 par preferred stock were issued at $111. Journalize the entries for May 1 and May 7.

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Question 22

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Retained earnings

A) is the same as contributed capital
B) must be restricted by law
C) changes are summarized in the retained earnings statement
D) is equal to cash on hand

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Question 23

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If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4.

The Dayton Corporation began the current year with a retained earnings balance of $32,000. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000. Compute the year-end retained earnings balance.

Which of the following is not a characteristic of a corporation?

The Torre Company has the following account balances in stockholders' equity on December 31.​ Answer the following questions: 1. How many shares of treasury stock are owned? 2. What was the average market price per share at which common stock was issued? 3. What was the average market price per share at which preferred stock was issued? 4. What is the total value of the paid-in capital portion of stockholders' equity? 5. What is the total value of stockholders' equity? 6. How many shares of common stock are outstanding? 7. If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid, what was the beginning value of retained earnings? How much is earnings per share for the year?

What is the total stockholders' equity based on the following account balances?

For the current year ended, ABC had the following transactions: - Issued 10,000 shares of $2.00 par value common stock for $12.00 per share.- Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share.- Purchased 1,000 shares of previously issued common stock for $15.00 per share.- Reported net income of $200,000.- Declared and paid a total dividend of $40,000.​ Assume that retained earnings had a beginning balance of $75,000.The company does not have any stock outstanding as of the beginning of the current year.​ a.Treasury stock b.Retained earnings c.Preferred stock d.Excess of issue price over par (preferred)e.Common stock f.Total paid-in capital g.Excess of issue price over par (common)h.Total stockholders' equity -$20,000

Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -A class of stock that provides no preference rights to shareholders A)authorized shares B)issued shares C)outstanding shares D)par value E)common stock F)preferred stock G)Paid-In Capital in Excess of Par H)transfer agent

Organizational expenses are classified as intangible assets on the balance sheet.

At December 31, Idaho Company had the following ending account balances: Retained Earnings: $250,000 Preferred Stock ($100 par, 7% cumulative, 10,000 authorized, 5,000 issued and outstanding) : $500,000 Treasury Stock: $40,000 Paid-In Capital in Excess of Par-Common Stock: $625,000 Paid-In Capital in Excess of Par-Preferred Stock: $50,000 Common Stock ($5 par value, 500,000 shares authorized, 105,000 issued) : $525,000 What is the total amount of paid-in capital that would be reported on the statement of stockholders' equity at December 31?

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credit(s) are made to

One of the main disadvantages of the corporate form is the

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Shares of common stock that were issued and then reacquired by a company A)cash dividend B)date of record C)Stock Dividends Distributable D)date of declaration E)treasury stock F)preferred stock G)date of payment H)Paid-In Capital in Excess of Par

While some businesses have been granted charters under state laws, most businesses receive their charters under federal laws.

Prepare entries to record the following: (a)Issued 1,000 shares of $10 par common stock at $59 for cash.(b)Issued 1,400 shares of $10 par common stock in exchange for equipment with a fair market price of $60,000.(c)Purchased 100 shares of treasury stock at $32.(d)Sold the 100 shares of treasury stock purchased in (c) at $42.

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following: (a)Purchased 1,500 shares of treasury stock at $16. The treasury stock is accounted for by the cost method. There were no previous purchases of treasury shares.(b)Sold 1,000 shares of treasury stock at $19.(c)Purchased equipment for $80,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the remaining.(d)Sold 500 shares of treasury stock at $14.

Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -The number of shares sold to stockholders A)authorized shares B)issued shares C)outstanding shares D)par value E)common stock F)preferred stock G)Paid-In Capital in Excess of Par H)transfer agent

Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -A class of stock having first rights to dividends of a corporation A)authorized shares B)issued shares C)outstanding shares D)par value E)common stock F)preferred stock G)Paid-In Capital in Excess of Par H)transfer agent